Spread betting clients are happy with their provider, so why are they so fickle?

Written by Will Peters Wednesday, 30 November 2011 15:40

Investment Trends survey shows clients are happy while Edison Research cast doubt on loyalty of spread bet customers.

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It looks as though sites such as Comparing Spread Betting could soon become redundant!

This is if you are to believe the findings of the latest Investment Trends survey entitled 2011 Trading Behaviour Survey.

The survey, released today, shows that client satisfaction with their chosen spread betting company continues to increase.

Indeed, the survey notes that satisfaction with spread betting providers has increased from an already very high base.

Seven out of eight spread betters rated their main spread betting provider as good or very good. Fully 40% gave their provider a very good rating, up from 38% in 2010.

Only 11% said their main provider was ‘average’ and virtually no one said their provider was poor or very poor.

These findings are interesting, as they would suggest there is little reason for spread bet clients to switch clients.

Yet, spread betting clients are a fickle crowd according to the findings of a research note released by Edison Research on World Spreads earlier this year.

The report said:

"Customer life cycle Spread betters are a fickle crowd. Many become active when particular news flow or markets are grabbing attention (eg gold in 2010) and they lose interest thereafter.

“Others move rapidly between providers driven by price, sentiment and ease. WS advises that the average active period for a client is only nine to 12 months during which period the typical profit for World Sreads is c £3.5k (range typically £2.7-4.0k) and monthly trades c 90-100 (somewhat higher in some overseas markets)."